MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
Overall MITK gets a fundamental rating of 5 out of 10. We evaluated MITK against 282 industry peers in the Software industry. MITK has a medium profitability rating, but doesn't score so well on its financial health evaluation. MITK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
MITK had positive earnings in the past year.
MITK had a positive operating cash flow in the past year.
In the past 5 years MITK has always been profitable.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
MITK has a better Return On Assets (3.13%) than 72.69% of its industry peers.
MITK has a better Return On Equity (6.05%) than 74.47% of its industry peers.
With a decent Return On Invested Capital value of 4.13%, MITK is doing good in the industry, outperforming 73.40% of the companies in the same industry.
MITK had an Average Return On Invested Capital over the past 3 years of 3.13%. This is significantly below the industry average of 12.03%.
The last Return On Invested Capital (4.13%) for MITK is above the 3 year average (3.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROIC | 4.13% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
1.3 Margins
MITK has a better Profit Margin (7.51%) than 74.47% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
MITK has a better Operating Margin (11.34%) than 78.37% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
The Gross Margin of MITK (85.84%) is better than 94.68% of its industry peers.
In the last couple of years the Gross Margin of MITK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% |
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
MITK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MITK has been increased compared to 5 years ago.
MITK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that MITK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MITK (1.72) is comparable to the rest of the industry.
The Debt to FCF ratio of MITK is 3.19, which is a good value as it means it would take MITK, 3.19 years of fcf income to pay off all of its debts.
MITK's Debt to FCF ratio of 3.19 is fine compared to the rest of the industry. MITK outperforms 63.48% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that MITK is somewhat dependend on debt financing.
The Debt to Equity ratio of MITK (0.68) is worse than 69.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.45
WACC9.1%
2.3 Liquidity
MITK has a Current Ratio of 1.04. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.04, MITK is not doing good in the industry: 71.99% of the companies in the same industry are doing better.
MITK has a Quick Ratio of 1.04. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.04, MITK is not doing good in the industry: 70.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.32% over the past year.
MITK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.42% yearly.
The Revenue has been growing slightly by 7.76% in the past year.
MITK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.26% yearly.
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
The Earnings Per Share is expected to grow by 2.38% on average over the next years.
Based on estimates for the next years, MITK will show a small growth in Revenue. The Revenue will grow by 6.37% on average per year.
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MITK is valuated reasonably with a Price/Earnings ratio of 8.38.
Based on the Price/Earnings ratio, MITK is valued cheaper than 93.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of MITK to the average of the S&P500 Index (26.54), we can say MITK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.91, the valuation of MITK can be described as reasonable.
MITK's Price/Forward Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 93.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaply inside the industry as 95.74% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 95.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
MITK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y3.34%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.13
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners78.41%
Inst Owner Change-0.38%
Ins Owners2.29%
Ins Owner Change4.07%
Market Cap415.96M
Analysts81.67
Price Target13.26 (45.24%)
Short Float %4.18%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.02%
Min EPS beat(2)1.42%
Max EPS beat(2)36.62%
EPS beat(4)3
Avg EPS beat(4)30.19%
Min EPS beat(4)-5.73%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.66%
EPS beat(12)8
Avg EPS beat(12)16.56%
EPS beat(16)12
Avg EPS beat(16)18.92%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.88%
Max Revenue beat(2)7.26%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)3.47%
PT rev (1m)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 8.91 | ||
| P/S | 2.35 | ||
| P/FCF | 8.83 | ||
| P/OCF | 8.6 | ||
| P/B | 1.89 | ||
| P/tB | 8.85 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)1.09
EY11.94%
EPS(NY)1.03
Fwd EY11.23%
FCF(TTM)1.03
FCFY11.33%
OCF(TTM)1.06
OCFY11.63%
SpS3.89
BVpS4.83
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROCE | 8.75% | ||
| ROIC | 4.13% | ||
| ROICexc | 6.47% | ||
| ROICexgc | 22.87% | ||
| OM | 11.34% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% | ||
| FCFM | 26.56% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
ROICexc(3y)4.74%
ROICexc(5y)6.29%
ROICexgc(3y)31.43%
ROICexgc(5y)27.46%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.5%
ROICexc growth 5YN/A
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 7.82% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 15.79 | ||
| Cash Conversion | 132.65% | ||
| Profit Quality | 353.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.72 |
F-Score8
WACC9.1%
ROIC/WACC0.45
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-7.92%
EPS Next 2Y3.34%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.27%
Revenue Next 2Y5.66%
Revenue Next 3Y6.37%
Revenue Next 5YN/A
EBIT growth 1Y704.3%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year19.39%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y72.26%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y71.49%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%